Key Considerations When Pursuing Commercial Debt

When individuals owe money to lending corporations, the process of recovery is simple; they have whole teams of people charged with the responsibility of checking whether the person is credit worthy, and processing the recovery of the debt in cases of default. When it comes to business-to-business debts, however, the waters may become a little bit murky. If you were a business that lent finance to another business that has now defaulted on its debt, what do you do? This is when you turn to commercial debt collection professionals. Pursuing a debt from another business is not an easy task that even your whole team of business associates and workers can pursue on their own. Several key plays have to be made by the commercial debt collection team to recover your debt. The following are two critical areas that ensure commercial debt recovery is an option, and is successful.

Credit scoring

It is crucial to know the financial situation the business you are going after is in. professional commercial debt collectors perform a credit score on the company on your behalf. They asses information such ass payment history of the company, tax information, other creditors of the company, and even the business owner's info. With such and more data, the commercial debt collectors then  carry out a risk analysis of pursuing your commercial debt. This gives you, the creditor, factual information to go with pertaining the debt and whether it is financially sound for you to pursue the debt. Remember, a business may be sinking in debt from multiple other creditors, or they may not be financially capable of paying your debt. This may make debt recovery a costly affair on your part and not even recover the debt in the end. Fortunately, good commercial debt collection agencies have trained professionals that can assure this is not your business' fate.


Debt recovery may end in litigation. This is when you have no option but to sue the company for the said debt. When it comes to this step, commercial debt collection professionals then look into the business from a legal standpoint on your behalf. They asses your case strength, as well as the other party's chances of escape. Here, they will also look at the business' assets, cheques and balances to see if litigation may yield profitable results. Before suing the business, you must know whether the business has property or machinery worth being recovered for your debt. Otherwise, litigation may turn out to be  an expensive affair that does not yield any results for your business besides loss in legal fees, collectors fee, and other charges.